Audi Malaysia has revealed a new step-up financing plan. Official details available on its website are scarce at the moment, so we got in contact with an Audi dealership to find out more.
Known officially as the Audi Progressive Financing Plan, we understand that the car financing scheme is available for all new Audi models currently on sale, except for the current A4 range, which is due to be replaced by the new B9 A4. The plan is an initiative put forward by Audi Capital Advisory (ACA), a division of Volkswagen Capital Advisory.
“Owning an Audi has never been easier with this new financing package, which provides preferred interest rates of as low as 0.98% per annum, greater flexibility to manage your cash flow and an accessible entry point to Audi’s entire range of progressive vehicles. So whether it’s one of our sophisticated sedans and sportsbacks, our sporty SUVs or our stylish coupes, there’s never been a better time to purchase an Audi vehicle,” said Imo Buschmann, managing director of Audi Malaysia.
Unlike BMW Malaysia’s balloon financing and Mercedes-Benz Malaysia’s “Agility” package, Audi Malaysia’s Progressive Financing Plan is structured for lower payments in the first year, with gradually increasing monthly payments over the years. No end big “balloon” payment. This allows one to own a new Audi at friendlier monthly costs, with payments that “step up” along with your salary, hopefully.
Speaking to a helpful sales advisor, we managed to get a brief example of the Progressive Financing Plan based on the Audi A3 1.4 TFSI, which is priced at RM186,900 (OTR without insurance). We were told that for a nine-year loan tenure and on a 90% loan sum taken at the currently-available interest rate of 2.38%, monthly instalments in the first year amount to just RM999.
The 2.38% interest rate on your loan remains throughout the tenure, while in the second and third years of that package, monthly instalments increase to RM1,530. The fourth to the seventh year is RM2,100, while the final two years amount to RM2,270 a month.
Another example, also based on the A3 1.4 TFSI, was provided with a seven year financing plan which carries an interest rate of 2.08% for the entire loan tenure. The monthly instalments of RM 999 remain for the first year, rising to RM1,600 for the second and third years, RM 2,650 for the fourth and fifth years, RM 3,410 for the final two years and has a final instalment of RM283.38.
For a five-year, 90% loan package, Audi Malaysia offers a low 1.18% interest rate. Based on this, monthly instalments for the first year are RM2,000 per month, while the second year is RM3,600. The third year rises to RM4,500 while the fourth and fifth years are at RM4,650 per month. As before, the the interest rate remains throughout the tenure – in this case, at 1.18%.
The Audi sales advisor also mentioned that for this month only, a RM17,000 rebate is being offered on all new Audi models (subject to several terms and conditions, of course). However, buyers will have to choose between one or the other when buying a new Audi – you can’t have the RM17k rebate and the progressive financing package together.
Based on the Audi Progressive Plan, the monthly instalments for the remaining models (except the Audi A4) are listed to start from:
- Audi A3 – RM999
- Audi A5 – RM1,900
- Audi A6 – RM1,700
- Audi A7 – RM3,300
- Audi A8L – RM3,500
- Audi Q3 – RM1,100
- Audi Q5 – RM1,700
- Audi Q7 – RM3,100
- Audi TT – RM1,500
- Audi R8 – RM6,600
Audi Malaysia’s four-year or 120,000 km (whichever comes first) manufacturer warranty remains as before, regardless of which package you choose. The SA also mentioned that the low interest rate currently available for its progressive financing plan will only be available for the months of March and April 2016. What happens next, we’ll have to wait for further clarification from Audi Malaysia.
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That 17k rebate sounds better than the package offered… They are Just playing with numbers..dont let the 999 installment convince u…. They seem to have good accountants!
thats why they make money…
No free lunch in this world. You help me, I help you lor
nearing the end of the installment, the audi owners would cough up more money, while the car substantially lost its RV…..and more frequent visit to workshop (means more money to spend)…
Good luck, aspiring Audi owners….
unfortunately my salary does not have the same increments … so haha cannot buy la
which is a better buy? Audi A3 or BMW 316i?
Would suggest you to skip the lower end base models and fork a little more for the 320 if u r really desperate for a 3 series with limited budget, or an A4.
both these models lack in power and accessories to accompany the brand and prestige that it should rightly have.
-BigBalls-
if not mistaken no more 316i bro..current base model for 3 series is 318i luxury..better package than previous 316i..better for u to go to bmw showroom and find out yourself
If can’t afford don’t buy la…
haha, unfortunately to say that our salary won’t catch up the trend.
Progressively bankrupt. Good luck!
Only if the warranty period is nine years, then you can consider taking this kind of plan. Yes, it seems cheaper, factoring in inflation.
There are only very few situations that I can think of, in which people will choose this way to finance a new Audi. And it is viable in those situations.
For instance, if you have 15 aircons in your house, with 288 lighting points, and you may still choose this plan for very specific interest/purpose.
Sounds insane to you?
Germans engineering your bankruptcy.
Well, if I were one of those brand conscious driver looking to move up from my ‘average’ Japs car to a more attention-grabbing European makes, I would’ve gone for this scheme.
Pay minimum monthly, only to suffer years later, assuming I don’t move up the corporate ladder or if my other half doesn’t breed so many offspring, which would burn a hole in my pocket….
Anyway, just throwing in my 2 cents worth, cause it really is worth 2 cents ;-)
strictly for Audi fans coming from the middle income group who wouldn’t mind taking financial risk to own the car… where it might be towed 2 years later and sold as “sambung bayar” online.
then again, this signals the troubling sales of the automotive sector. brands are using very creative ways to boost up sales. or risk suffering big losses.
Guys and girls word of advice… anything more than 5 years loan for a car means we can’t actually afford the car… try not to stretch your debt too long.
Though… Audi TT looks very yummy at RM1.5 k per month… hmmm
Fixed deposit nowadays at around 3.15%. So this 2.38% makes sense to take the loan rather than paying cash. Keep the cash for the extra 0.77% interest to offset the loan.
LOL. That’s not the same thing. Take a step back and figure out why I said this. Don’t let these “low interest” car loans fool you.
What I am particularly interested in, is this… We all know the car depreciates most in the first 5 years (normally 50-60% of its new value). With these progressive payments in place, means you pay less of your total loan, yet dealing with the highest depreciation.
What happen if you total a car in the first year or 2? There is no way your insurance will pay out anywhere near your outstanding loan amount.
One who is willing to go through all this twist and turn method to own a luxury car must be desperately wanting to impress everyone that he or she had made it. But think about the long term implications and you shall be turn off by the dimming prospect. Good luck!
Actually, it’s not uncommon, such installment schemes. As the article said, some form of it exists with other carmakers as well.
In the end, the buyer needs to know his capabilities. To me, who is in the market to replace my 6 year old F10, the A6 scheme looks interesting. The top end of the installment rate is still within my current payment for the Bavarian, so immediately the A6 becomes attractive.
The lower installment of course attracts a different category as well, but as I said earlier, you need to know your capacity to repay at the higher end of the scale.
The financier will not look at your capability to pay the lower end of the scale, but at the top end. This insulates them from a high risk customer.
it should be the other way round..highest installment for the 1st to 3rd year..then lower it for the remaining years..
It’s scheme to make it seem affordable for those who can’t really afford the car by pulling them in with low instalments in the first year. Higher future salary may be matched with higher future expenses especially for young couples so paying power may not be that much different. Of course salary increment may not match expectation. Only take this scheme if you can afford the highest instalment now. But if you can, why would you take this scheme?
If you can’t pay the instalments you won’t be able to sell the car and cover the loan balance either. So the only choice is to let the bank re-possess the car. In Malaysia repossessing the car isn’t the end of it- the bank will sue you for the balance between loan balance and market price. You will probably be made a bankrupt and it’s pretty tough to be a bankrupt in Malaysia.
Hi! I’m looking for a Audi car